Replies to post #146286 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Have you ever tried to calculate the assets the "government". In on respect the government books are much more conservative than corporations. We do not amortize capex, we expense these as they come. If absolutely necessary, the "government" could sell few airports, maybe few thousands miles of interstate highways and cover its deficit. I doubt that such a default is in the cards, that is why most of the world likes the dollar.

[Zeev Hed]

Bullwinkle, sorry, I did not have a chance to proof that post, here is a better version:

Have you ever tried to calculate the assets the "government" owns?. In that respect, respect the government's books are much more conservative than corporations. We do not amortize capex, we expense these as they come. The books include absolutely no goodwill. And real estate is carried, in most cases at a zero value. If absolutely necessary, the "government" could sell few airports, few buildings, few national parks", maybe few thousands miles of interstate highways and cover its deficit. I doubt that such a default is in the cards, that is why most of the world likes the dollar.

[mlsoft]

Bullwinkle...

In the real world, the US government would never default on its obligations. Long before such a drastic measure would be taken, they would instead drive the value of the currency down so low that repayment in "real" value would be cents on the dollar so the debt burden would be far less than it now appears.

Of course, that would create its own set of problems, but those hurt the worst would be the owners of the debt - the bondholders. The big winners would be those folks wise enough to own "things" instead of fiat money - real estate, gold, and other long term assets.

mlsoft